Question
1.If the coupon rate is equal to the market rate, the bond will be a: Group of answer choices A. premium bond B.discount bond C.at
1.If the coupon rate is equal to the market rate, the bond will be a:
Group of answer choices
A. premium bond
B.discount bond
C.at par bond
2.You have a choice between a Lexus ($50,000) and a Toyota ($25,000). How much will that Lexus cost you in retirement funds over the Toyota, if you retire in 40 years earning 8%?
3.I want to have $2,000,000 saved by retirement. How much do I need to save each year for 40 years if the rate-of-return is 8%?
4.Company X is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pay semi-annual for 5 years.
What are the proceeds from this bond sale if the market rate is 7%?
5.Company X is issuing bonds. They plan to issue 10,000, $1000 par, 7% bonds that pay semi-annual for 5 years.
If the price per bond is $980, what is the market annual rate-of-return? (percentage, 2 decimals, e.g. xx.xx)
6.Instead of buying lotto tickets, I decide to invest the funds. Assume we would normally spend $1000 a year on lotto tickets. How much will we have in at the end of 40 years at 8%?
7.I want to buy a house. The house costs $1,000,000. I put 20% down and borrow the rest. If the mortgage is 30 years, and the rate is 4.5%, what is the monthly payment?
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